NEW YORK (TheStreet) -- Marriott (MAR) - Get Report stock is climbing by 4.20% to $71.52 in early-morning trading on Monday, after an investor group led by Chinese insurer Anbang sweetened its takeover bid for Starwood Hotels & Resorts Worldwide (HOT).
Anbang's revised offer of $82.75 per share in cash, or roughly $14 billion, compares to Marriott's most recent stock-and-cash offer valued at $75.91 per share, or roughly $12.8 billion, based on Thursday's closing price.
The counteroffer comes after Marriott shares declined by 6.2% last week, valuing Marriott's latest offer below Anbang's previous cash bid of $78 per share, Bloomberg notes.
Starwood said Anbang's bid will likely lead to a "superior proposal" to its merger agreement with Marriott. This would allow Starwood to engage in discussions with and provide diligence information to the Anbang group, according to a statement by Starwood.
If Starwood merges with another suitor, it could owe Marriott a breakup fee of as much as $450 million and an additional $18 million for costs related to financing the deal, the Wall Street Journal reports.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B-.
Marriott's strengths such as its growth in earnings per share, revenue growth, good cash flow from operations and increase in net income outweigh the fact that the company has had lackluster performance in the stock itself.
You can view the full analysis from the report here: MAR
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.